Emmanuella purchased a put option on British pounds for $.06 per unit. The strike price was $1.85, and the spot rate at the time the pound option was exercised was $1.69. Assume there are 31,250 units in a British pound option. What was Emmanuella’s net profit on the option?

/in /by

Emmanuella purchased a put option on British pounds for $.06 per
unit. The strike price

was $1.85, and the spot rate at the time the pound option was
exercised was $1.69.

Assume there are 31,250 units in a British pound option. What was
Emmanuella’s net

profit on the option?

You might also like
A company needed ghc 1000 to finance its activities. The firm can financed this expenditure either by bonds or equity. Interest rate on bonds is 10%. The company can earn ghc 160 in good years and ghc80 in bad years. Assuming the firm faces equal probability of good and bad years; i What will be the stream of returns on both bonds and equity if the company chooses the following financing options a 100% equity financing b 50% equity financing c 20% equity financing d 0% equity financing ii Estimate the equity risk associated with each option in (i) iii As an investor who wants to purchase a share in the company, which financing option will make you purchase the stock. Why????
You are at the midpoint of a project and have used only 30% of your budget. Does this mean that you will be under budget at the end of the project?
A consumer has a utility function given by ln _U_ = 5 ln _x_1 + 3 ln _x_2 if the budget constraint is given by 10_x_1 + 14_x_2 = 124, find i) the optimal quantities of the two goods that the consumer should purchase in order to maximise utility, subject to the budget constraint. ii) the value of the consumer’s marginal utility of money at the optimum iii) the marginal rate of substitution (MRS) of _x_1 for _x_2 and determine its direction at the optimum
Solve this quadratic programming using the primal dual interior point method or the Barrier Function interior method. Find the values of _x_ that minimize _f_(_x_)=0.5_x_2 1 +_x_2 2 −_x_1 _x_2 −2_x_1 −6_x_2 , subject to the constraints _x_1 ≥0 _x_2 ≥0 _x_1 +_x_2 ≤2 −_x_1 +2_x_2 ≤2 2_x_1 +_x_2 ≤3.
In a certain market, the demand for peach was given as QD = 400 -3P, the first day of marketing in 2020, in August 2020, the demand for peach is now given as QD = 200 -3P. From the statement above tell in one sentence the change in demand; what did you consider as the indicator? Write down any five factors responsible for the change in demand. Support your answers by sketching the equations above on the same graph.
If a consumer has a utility function u(x 1 , x 2 ) = x 1 x 2 4 , what fraction of her income will she spend on good 2?
Find the slope of an assumed linear demand curve for theater tickets, when persons purchase 1,000 at $5.00 per ticket and 200 at $15.00 per ticket.
John graduated from college and began working in the family restaurant business. At the end of the third month of the first year he began putting R7440.00 per annum in an individual retirement account and contributed to it for a total of ten years. The account interest at 11% per annum, compounded quarterly. The amount that was available to him after ten years is...